Average cost of super fund comprehensive advice – $2,000 - $2,500

15 April 2020
| By Mike |
image
image
expand image

Superannuation funds can deliver comprehensive advice for an average of around $2,500 a member and intra-fund advice can be delivered for as little as three cents per member per year.

The financial adviser community has been granted a rare glimpse of what financial planning actually costs within superannuation fund structures, thanks of questions pursued via the House of Representatives Standing Committee on Economics Review of the Banks, Insurers and Superannuation funds.

An examination of answers provided to the committee by First State Super, HESTA and Equip Super has revealed that, in the case of First State Super, which no longer employs advisers directly under it license, it spent $1.9 million on the provision of intra-fund advice which equated to an average cost to members of 3 cents.

This compares to Equip Super which estimated that the average cost of advice apportioned to individual fund members was $8.07 and HESTA which estimated the cost at being 1.19 cents per member.

HESTA revealed that the average per fund member cost of comprehensive advice in 2018/19 was $2,043 up from $1,9191 five years’ earlier.

HESTA said the cost of general advice in 2018-19 had been just over $4.3 million, equating to $5.17 per member.

First State Super made the point that it was no longer directly employing advisers but, in answer to question about the aggregate value of bonuses provided for intra-fund advice, and the average per adviser it provided the following table.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago